Overnight US stocks | The potential agreement between the U.S. and Iran has ignited bullish enthusiasm, with the S&P 500 index reaching its first new high since June, and SanDisk (SNDK.US) rising over 10%.

On Tuesday, hopes for the restoration of shipping through the Strait of Hormuz between the U.S. and Iran lifted the stock market to record highs, with all three major indexes closing significantly higher. The S&P 500 index reached its first new high since June. U.S. StocksAt the close, the S&P 500 index rose by 1.79%, finishing at 7736.52 points, marking its first new high since June; the Nasdaq Composite index increased by 2.59%, closing at 26584.99 points; and the Dow Jones Industrial Average climbed by 907.47 points, up 1.71%, to 54085.88 points. Both the S&P 500 and Dow closed at all-time highs. The Philadelphia Semiconductor Index jumped 6.55%. SK Hynix (SKHY.US) soared 8%, Micron Technology, Inc. (MU.US) rose 7.6%, SanDisk (SNDK.US) increased by 10.8%, NVIDIA Corporation (NVDA.US) gained over 2%, and SpaceX (SPCX.US) advanced 9.4%. The Nasdaq China Golden Dragon Index fell 0.35%, while Alibaba Group Holding Limited Sponsored ADR (BABA.US) rose 1%. European StocksThe German DAX 30 index increased by 386.44 points, or 1.51%, to 26017.22 points; the UK FTSE 100 index dropped 13.15 points, or 0.12%, to 10854.90 points; the French CAC 40 index rose by 104.18 points, or 1.22%, to 8613.82 points; the Euro Stoxx 50 index gained 72.34 points, or 1.14%, to 6430.35 points; the Spanish IBEX 35 index increased by 186.21 points, or 0.94%, to 19969.11 points; and the Italian FTSE MIB index rose by 684.47 points, or 1.31%, to 52857.00 points. Asian MarketsThe Nikkei 225 index rose by 0.32%, while the Korea Composite Stock Price Index increased by 1.62%. U.S. Dollar IndexThe U.S. dollar index, which measures the dollar against six major currencies, fell by 0.04%, closing at 99.858 in the forex market. As of the close of trading in New York, 1 euro was exchanged for 1.1533 dollars, up from 1.1514 dollars the previous trading day; 1 pound was exchanged for 1.3452 dollars, up from 1.3431 dollars the previous day; 1 dollar exchanged for 157.66 yen, up from 156.74 yen the previous day; 1 dollar exchanged for 0.8092 Swiss francs, down from 0.8101 Swiss francs the previous day; 1 dollar exchanged for 1.4066 Canadian dollars, up from 1.4045 Canadian dollars the previous day; and 1 dollar exchanged for 9.5192 Swedish kronor, down from 9.5557 Swedish kronor the previous day. CryptocurrencyBitcoin surpassed $64,000; Ethereum remained relatively stable at $1870.19. Crude OilSeptember-delivery WTI fell by 5.7%, settling at $75.77 per barrel; October-delivery Brent decreased by 5.3%, settling at $79.36 per barrel. U.S. Treasury Secretary Yellen stated on Tuesday that an agreement regarding the opening of the Strait of Hormuz may be reached today or tomorrow. Precious MetalsSpot gold was reported at $4077.91; spot silver at $59.541. Macroeconomic News U.S. Job Openings Slightly Decrease in June, Labor Demand Remains Stable. The number of job vacancies in the U.S. slightly decreased in June, indicating that after entering summer, overall demand for labor from American companies remained relatively stable. According to data released by the U.S. on Tuesday, June JOLTs job openings fell from the revised 7.54 million in May to 7.36 million. The market's median expectation was for approximately 7.4 million job openings. The decrease in job openings was primarily driven by reductions in healthcare, leisure and hospitality, wholesale trade, and business services, while layoffs remained largely unchanged. The report released on Tuesday confirmed the stability of the labor market and the limited layoffs. While some employers are still cautious about increasing headcount, resilient consumer spending continues to support hiring plans. Recruitment has accelerated, driven by healthcare and construction. However, hiring in leisure and hospitality has declined for the third consecutive month, reaching its lowest level since early 2025, contradicting previous expectations that the World Cup would stimulate labor demand. Media: White House Has No Plans to Publicly Release Details of Advanced AI Model Assessment Framework. According to reports, three sources knowledgeable about the discussions said that the White House does not plan to publicly release its new framework for assessing advanced artificial intelligence models, and related details will only be provided to companies participating in the process. Companies, policymakers, researchers, and U.S. allies not involved in the process will not have access to understand how the government plans to implement one of its key artificial intelligence policies. The White House held a staff-level meeting with industry representatives on Tuesday to discuss the recently completed framework. Companies not invited to the meeting remain unaware of the contents of the framework, and it is not clear which "trusted partners" will gain early access to advanced models under this framework, including whether any foreign governments qualify. Insiders revealed that the discussion included open-source models but did not provide further details. Sources added that employees of NVIDIA Corporation (NVDA.O) participated in the related meeting. "Fed Mouthpiece": Yellen's Policy Reaction Function Is No Longer So Dovish. Fed mouthpiece Nick Timiraos stated that U.S. Treasury Secretary Yellen's policy reaction function has shifted to be less dovish. Her comments this year suggest that the Fed should continue to keep rates unchanged. Earlier this year, Yellen had indicated through models that the Fed's interest rate level could be above the neutral rate by a margin ranging from more than 25 basis points to over 100 basis points. Today (August 4), she put forth two points. Firstly, she defended Waller's decision last week to not elaborate on any policy reaction functions: I believe every meeting should be open, and market participants should judge for themselves... I think Waller wants to retain flexibility for achieving the best outcomes. Secondly, she did propose a set of policy reaction functions that could be viewed as dovish, arguing that recent shocks should be ignored: What impact will the rise in short-term interest rates ultimately have? We shall see. She raised this question but then responded by pointing out that underlying inflation is very mild... very stable. Core inflation, after excluding the more volatile components affected by energy, has remained very stable. I believe this situation will continue. Wells Fargo & Company: AI Investment Boom Will Spill Over and Boost Traditional Industrial Stocks. Wells Fargo & Company strategist Ohsung Kwon is optimistic that the increasing construction of data centers will benefit the industrial sector. He stated that capital goods companies producing machinery, equipment, and tools for data center construction are among the stocks closest to the AI concept. According to Wells Fargo & Company, manufacturing activity expanded at its fastest pace in over four years in July, with non-AI-related capital expenditures growing 10% compared to the same period last year. Additionally, growth in commercial and industrial loans has accelerated. In recent months, traders have begun favoring the so-called traditional economy sector, which has driven industrial stocks up 20% this year, trailing only the energy and information technology sectors. Kwon estimated that about 40 new ultra-large data centers are currently under construction, with over 100 more in the planning stage, primarily concentrated in Texas, Georgia, Virginia, and Pennsylvania. If the economic benefits from areas where operational data centers are located do indeed become a new trend, then we are currently in the very early stages of this spillover effect. OPEC Oil Production Further Rebounds in July, with Three Gulf Countries Contributing Almost All of the Increase. According to media reports, OPEC's oil production recovered some of the losses caused by conflict last month, driven by increased output from Kuwait, Saudi Arabia, and Iraq, pushing up supply. Surveys indicated that OPEC member countries increased supply by 1.16 million barrels per day in July, to an average of 19.44 million barrels per day, with the three Gulf countries contributing nearly the entire increase. The organization's output remains significantly below pre-conflict levels. Iraq led the OPEC member countries in production growth in July, with daily output increasing by 460,000 barrels to 2.3 million barrels. According to tanker tracking data, Iraq's crude oil loading increased by 37% in July. Kuwait's daily output rose by 360,000 barrels to 1.57 million barrels. Kuwaiti officials stated this week that the country has returned to the highest average production level since the conflict began. Saudi Arabia's situation is more complex. According to the survey, Saudi output increased by 390,000 barrels per day to 7.4 million barrels per day, but its production is still millions of barrels below pre-conflict levels. Meanwhile, due to threats from Houthi forces regarding the alternative shipping routes used by Saudi Arabia in the Red Sea, its export flow has decreased. U.S. Trade Deficit Narrowed in June as Imports Declined for the First Time This Year. Due to a decline in imports for the first time this year, the U.S. trade deficit narrowed in June, with reductions in imports across several sectors. The U.S. Department of Commerce reported on Tuesday that the trade deficit in goods and services fell by 5.6% from the previous month to $73.3 billion in June. Specifically, imports declined by 1.8%, while exports decreased by 0.9%. Trade data indicates that net exports have continued to drag on economic growth this quarter. U.S. trade data has shown significant fluctuations in recent months due to varying tariff policies, disruptions to the supply chain caused by Middle Eastern conflicts, and substantial investments by companies in artificial intelligence. Although the U.S. Supreme Court struck down many tariffs imposed by the Trump administration in the first quarter, the government continues to seek other ways to impose duties on imported goods. Between early 2025 and the beginning of this year, companies have aggressively pursued investments in AI, leading to a significant increase in imports of computers, peripherals, and related components. However, the latest trade report indicates that imports of computers and semiconductors slowed in June. Broader categories of capital goods, including related equipment, also experienced a decline in imports for the first time since September of last year. Individual Stock News Apple Inc. Begins Preparations for September Launch Event, Retail Employees Open for Lottery to Participate On-Site. According to well-known tech journalist Mark Gurman, as Apple Inc. (AAPL.US) approaches its largest product launch event of the year, the company is allowing U.S. retail employees who wish to work at the in-person launch event to enter a lottery. An internal memo indicates that the lottery allows retail employees to apply for on-site work at the event, where they will assist with queue organization, visitor registration, welcoming attendees, providing guidance, and supporting security teams. The company has informed employees that the launch event will occur in the first half of September, but did not provide a more specific date. Historically, Apple Inc.'s iPhone launch events are usually scheduled for the second Tuesday or Wednesday of the month. Since the U.S. Labor Day holiday falls on Monday, September 7, it is slightly more likely that the event will be held on Wednesday. This September's event will be the first major product launch under CEO John Ternus, who will take over from Tim Cook starting September 1. Novo Nordisk A/S Sponsored ADR Class B Raises Earnings Guidance for the Second Time This Year. Novo Nordisk A/S Sponsored ADR Class B (NVO.US) has raised its earnings expectations for the second time this year, citing increased expectations for sales of obesity and diabetes medications. Novo Nordisk A/S Sponsored ADR Class B stated that the adjusted operating profit for the second quarter of 2026 is projected to be DKK 33.389 billion, and the full-year outlook has been upgraded. This year, the maximum expected decline in sales and profits is 6%, whereas earlier the company estimated that the decline at fixed exchange rates could reach up to 12%. Novo Nordisk A/S Sponsored ADR Class B is competing with Eli Lilly (LLY.N) in the obesity market. Forecasts suggest that this market could reach a size of $120 billion annually by 2030. Major Brokerage Ratings Bank of America Global Research Initiates Coverage on SK Hynix (SKHY.US) with a "Buy" Rating; Target Price $250.